SiriusPoint, the new insurer and reinsurer incepted via the combination of Third Point Re and Sirius Group, has said that increased scale will allow it to capitalize on more market opportunities.
In a recent presentation, SiriusPoint explained that the enhanced scale and underwriting capabilities provided by its merger will make it well-positioned for profitable growth.
The transaction is expected to create a global re/insurance franchise with presence across A&H, property, liability and specialty lines.
SiriusPoint’s priorities going forward include building a diversified reinsurance franchise with a sidecar-like retrocession program, an A&H vertical platform, and specialty capabilities via a similar vertical platform.
Following the combination, the company also plans to rely less on property catastrophe business to drive its underwriting profitability.
Additionally, a repositioning of its investment portfolio and an independent governance structure is expected to improve its ratings trajectory.
Overall, SiriusPoint’s business mix is expected to be made up of 35% property business, 34% specialty and casualty, 24% accident and health, and 6% runoff and other business.
This business, worth an estimated $25 billion, will be skewed around 78% towards reinsurance and 22% towards primary insurance.
The combined company’s gross written premiums are expected to total $2.525 billion, based on Q2 2020 figures of $591 million for Third Point Re and $1.934 billion for Sirius Group.
Third Point Re shareholders approved the issuance of Third Point Re common shares to Sirius Group shareholders back in November in connection with the closing of the transaction, as well as the issuance of shares to Third Point CEO Daniel S. Loeb.
Chief Executive Officer (CEO) of SiriusPoint, Sid Sankaran and Dan Malloy, current Third Point Re CEO, have maintained that the combined company is determined to focus on the bottom line to ensure underwriting excellence.
